OFFICE OF THE AmORNEY GENERAL OF TEXA8 

AUSTIN 

,oalamolay frnom 

You8 r8Qtl8rt Mad8 

t 8ltuatlon8 

to tho appUcm80 all Ho. 8, 

-88VOdih bgirla- 
. 

501 

Honoroblo ffoorgo ii. aheppiml, page a 

"XS the Swogolng qwrtion ia anmrored in 

the nogstivo, then 3.8 auah aampany roQulrod to 

pay the tax provided In Beqtion 8 of Artiolo 

XI of the Omnlbw ‘fax Lav? 

‘I? thir 00rmpany r8Quil'Od to ~A'O&?O& bnd 

pSy thb~ta On th0 gOr &woduoed in bAi8iUl@? 

?&no. 1. (1) There is hereby levied en 

oooupajaon tax aO.tho bwinors or oooupatiari 

of ~J~‘oduo~ gor: Within thl8 IWate, somputod 

88 .fO~OU8~: 

hbrd $U~Oduood and raved 

4 

thill thi.8 Statb, 

and Of 8&l Ra8 80&d if Dl’OdUO d in .SnOther &i%te 

and iamrtod .into this State. at tho a@rket 

V&U. thWbO& '88 and lthen produoed, w a8 and 
; ‘. / 

. 

502 

Honorable Oeo~ge Ii. ~sheppard, pagti 3 

800lr l¶8tural. 88 #h&l IIOYW be &OW th8n blbYCu& 

one hwdrbd f fi ftiethr (ll&O) of one (1) oont 

pbr qae thoudad (1,000) oubio reet cm 'mot snd 

#our a8tur8l gw -sold w produoed aad 8ared in 

thlr 8tPatb, urd,not thbroaftor lawfully injeoted into the oa~th ia the 

the touovips p 

tat0 OS 'P&8, for 

oIe* 1 

~'. (b. noyol.%n& 

3 

t a) rtor8go~ thbrborl 

,P~O88Ui'~j (d).U.@& 

and not .thermftor~ (0) Uwfully vented w 

&wed in oormootiozk with the'poduotion cf 

Oili 

~. poduatr extpaatodi reprated and 8sYed from 

8WbgMi 

"b a&b ge is 8old.fw 088kthO t8X 8-1 

bb Oolliput8d on~thwprodwerr* grorr reoeipt8 of 

rush 8-j and in Q88e tho,uhale qz.6 part of 

tho oowideration ror then 8818 or &u is sng. 

port%on of the prodwtr extmoted ~fiwm 81mh g.88, 

the tu.aha$l be craqputed on~tb -88 velue 

of the pMduata reoelved pltu all other thing8 

of value reoeivod by tho produoer, exohpt In 

,awe of @So proaerred by roayolsng opecsciowi 

“Xn ilet- the market value of gas 

the tax due there 

Of re8ldue &8 hWiQt0 qlb outh in the state or 

tbxw fort&b folle pur 08e9: 

thbieof (b) repzetaruringj P 

(8) storage 

a80 (d J 

o) lifting oili aud 

,I: .:. aan la~f'ully vented or flared In oon- 

: neotion vith tho produotion of oil; aavtu and 
Eonwabh Qom&e H. 6hhoppara, pago 4 

oxaept howovw, 3.f auy gu 80 injeoted Into ths 

ssrrti&18 aold~fex 8UO.b gurpoaoa, aen the aarkbt 

Ytiti~,bf?tk&b 888 80 '8Old rball XiO$ b@ bIolUdbd 

In oaaput* thb tu. All l+qtid hydrootibcw 

th8t 8re rbaOvbrbd fwm ar*a%y mbdnq 0s a 80 

bo.t8gbd at the .Mme rate a8 0l.l a8 lbvled 68 

AvtlOlb t or turn Aat. 

"(2) The tsf heroby levied a&U bo 8 

li8bllity of thb produoer 0s ga8 am~it8lxUl 

be tb duty of'ewih auoh preduaer to'koop.aaourote raowda ku 'Pexaa of 8lJ gee p&dwed,~aaking mmhly rypwta under iiath I+ hweiwftor 

providckd. 

"(3) Pho pureh8aw org88ahtu+8ytho 

tru,DP-8aa 888 pwohMed and deduot thb t;ar 80 

peid l'rm.;the p8ymmt dub the prodwbr ok other 

intOs'O8t hohl+'8, SJ8kU@ 8Wh w-t8 @d deduotod to tho OoiaptroUer Of FtablZO &?OOpnt8 by 

pepa dub produaera rw .aha p8yuent 0s tuti 

tu~bob416'bpthegttrr~a,intrlratror 

thb we prtd bedat 0s the a8t? of 9~ w 

shall not be oomalnglod with 

h a l& b y l oid &W'Oh88Ol', Stud aiii%%?=d 

to tha State Zrouuror in woord8we with thb 

trrma 8nd pr0*;l*10na of tbi8 Art&bled* (Underoowing oura) 

"600. 2.' (1) FOP thb pm8b Of thi8 bt 

'produo0P,r( ahal meal My pbraon oluluq; ooptrOlling, 8llW@h& 0s 1W8ing 8D$ &or YOU. 

O&O? w &3OP8W YhO ~0dUOO8 &Ii w SMUW 

my g88 by t&lag it from thb eaoth or oator 

%n thUBtate, utd ah8ll inoluda any pb'ion 

ovn%hg 8uy royttlty or othw intereat in any garr 

or ita,vdlue whbthbr pwduoed by him, or by 801~ 

other person onhi8 beh8lf, elthorbylotue, 

contrmt, or othwviao. 

"(2) 'Firrt purohuor ahal mean any perronpur0liaa*g08 framthbprodwer. 
, 

504 

Eonorrble @eorgo. 8. $heppsrd, page 5 

“(3) ~8Ub8OQWJIt: &W@l880~' Shd& MM 

iany pbra who purch8aea gu' for 8ny pup080 

ThEttSOOYe.~, % ThOn 88ld. ga8 $8 purahraod frrO~ any 

por8on o+tr th8n the ~producw.~ 

"bbo. 28. (1) 2ho tu hokn impoaod On 

thb ~OdU~~Ot; &jIU Sh8ll b8 tbo ~prS.mWy ;uabXUty of the producer 88 hbrblnboforo dbrbbd, 

8Ud OYOPJ wP8OU 5XlFahcr8%llf4 g88 fPOE ~OdWOO 

thweoi .8nd trLing dbUvery thoroof rt or aear 

the prom%aea vhwb produood ah8ll oolloot 8ai.d 

tax inpored by thir &%iCle fmm the produoor. 

BYorypurch8aor lnCludIJq:thC fir8t@F@8OP~ 

u&d tha SubreQuent puroh88er, ~oqulawd to ool-~ 

~loot any tax under thi8 Ast1010, 8&&l mClKC l wh 

oollootlon by deduot+lrg end vlthboZd@~ t.Iw 

anounti 0s awh tat rmm 8ny payi8aaa made by 

8yh puroh8aw to the pmduo8r, and remit -8aaa 

as herein plrovhlad. . e .* 

giGa of aatd a88 w*thin thl8 St8te..* (bdbrrow&q our*) : 

Thla statute letio8, l UL oceup8tioa'tu op tho buaiI, -88 0s produclq fgma It i8 I 853OOia8 Oi bXOi8b t8X knOTSI 

.$a al oocqprtion tax. .A 8tcrtMMt In rbgurd to thb c~888ifio8- '. 

: tbn Of tub8 i8 found in 2fi ~Idiaig aMb, UT 34, 88 fOuQU8a 

*'Pam8 r8.u n8twolly ~hto tar00 ol888e8, 

-4, C8&9%t6tiOn Or POU. tlUe8, t&XC8 CR prowl'tp, Md bXOi8~8." 

~h~bX#M8tiOZl Of OXdEb taZe8 i8 iU%dO in tho S@lBO diSOU88iOll 

kr 26 Rullq Oeao L8v 34, 88 follwar 

I... v bxcias incrlude8 every r0m al? ohm60 

%mpoled bTf PUbllC SUthOP%tJT fOl' the pWRO8e Of 

rsia%ng risvonue upon thb perfarnranoe 0s an act, 
Qoorgo Ii. ahsppard, poee 6,' 

505 

the enJoy0ent of.8 poi~&loge, or the ongngi,zq 

in an oootipWi%on~ The ob 

=r 

tion ,to pay 8n 

., . axoiao i8 b8abd upa the TO UntMy 8otion 0s 

the pOP8Ol3 taxed %n pb*fWmiX~g th8. 8Ot, en- 

’ : joy3.q thb prLv%lego, w on$agine in the ~ao~upcrtrlon *hiah $8 the 8UbjOOt O?.thO bXd80 and 

the elOmOnt o? abrolute and~wuwoibable degmymhnt of, tho tiax evbm whbw the 8ot is pbrfwmod by ROMOSidOIlt8 Of th. SibtO Yith PerpOt 

to property llhloh h88 MYW been Ylthln It8 

bowdMt.8, prorid. t&b Ut Yhioh 18. 8LIbjOOt 

to tho tar is potrormed wa.n the 8tste, and 

oonYor8oly an oxoiae OauucA oon8tltutlonaly 

be lmpo8ed upmthe pw?ormMe e of an 8ot out81d8 the UrnitS O?.thO ~oYOrW@Ikt~ Wit by. 

uhbh the exwtse Uleviod. . . ." 
1 
by talcbq,lt fwea the us* OR v8tora %a this pt8ter . . ." 

Thw, *I au an inapprl~tc)pay In the statute. '31 v*tue of tho 

I8atth8t&6tlan~fqpaa*a upontru~%mdu6br thoaeta.ma 

hued Qp w ~Ofhl@ti~~ WiO#L@? St&t&, Y&i.& FkOtiOIb 2 ut8 

8 pro du4pr l pUpty~whoprodwb8 íto -8 la thi8 ml8tPO. xf 

+668&6~ 4 18 6onaPuod to.mtlplirCt,~$+ t8U 08 th6, 'BNdWbr,' 

&&d thb ~2WBdUOW,-i8 dbbMd th&@Wty +ha t#kM.thb gor, Hera 

the eurth or thb puty ,* owns w bontr618 thb egos wel3 rbgbrdlua 0s tb def2.nlti~~'-*o da not aw~hov-t;lu tax bared Q~L 

Usd lawortbd g8a 08n bo bafaobd, ~bboawo the prodwer might 

J&Ot bb YfthfEl thb jWf#diatiW Ot'thf8 8t8tOr %W @S ni&h$ 

h8ve -8Od through the hands Ot.UYWr;l 8waaa.8lve oIw]pI by 

thWthOitFOWhO8 %X6SMd8ifl'8t~b 06OWS fIifbX88.. 

FOP th.~OMOM &Y&tn thb tWb WtOf t#L%8'Opini~tOt,h0 

eff*ot th8t .a state oauna$ imps* a tas on 86t8~ beyood it* 

bound8vloa, ro:do~wt~aie hov tha mwda of tmtion 1, b.aorsr 

i8 It Qonoeraa g88 predwbd la ""thy 'rtatq,, oas,be given or-‘ 

f$a~~,Uo~otrwdabe~th8tthetox &8llbe@dbytho 

%hOYWdS Of 8bOtiOB 1 d0.I.WtjWJ~iEQ08iIl& 

on, uhyaab. 0th~ than the 'prodwor" the t8x beied on gar prodwed outride of the Btato. We do.-not 800 hov Baotlon 1 rill 

8U&QMXt th8 1Oty Of 8 t&X hued On 688 produord bbyond the 

bOWdWib8 Of thb 8t8tb Of tOXB8, 

‘!&o 8&y 08hW oplrt Of th0 8tatUta~ that d&8 rith 

.@a prodwed outaldo of TU8a la ~&otlon 8, qoo$ed ebove. 

Bobs it levy 8 tar th8t oen b0 en?oMod? If0 chlqlr it doer 

not. &laid Sbotloa 8 povldor th8t in thb oreat ‘the bssir 

to be-urrdlna8loill8ting 8t8x onpa importodlnto thla 

Btato be dooWod top soy re88on to be . . .lr&Ud' then there 

ah8ll bb glk~Wl on all @a fmpwtod into this Stat0 8 tax of 

fir0 (5~) per 0-t of th, mukot v8lw of aisfd 688 upon the 

ffF8t sole 0s raid g88 dthfa this st8to.’ Fh8t la 8ll 0s thy 

provision,,, - it d0O8~IWk 88y MJtbing 818,O. im0 (Uh8t m80Il) 

18 E;hi8 t~.2O~iOdO+Mt?. yho 18 8uOporOd t0 pm it, thO 

.‘rrl?crr or tho buyor? The statute do08 aot 8aj. Uo think 

aud aeotlon 8 la ?rtUy defootlve, and thw8fQre vholly lnoperatim, beomne 0s meld roflure on the prt 0s the laglrlaturetopreroribevho -pay 8ridtu. 

our 8Mvbr to YOU' first quertlon 18 th8t tho ocapsn~ you Mk 8bOut i8 not X'bQUfUd by YirtUb Of said &tiol8 

7047, VJ.C.&, to oolleot '8 tw on, or by rirtue or, the ga8 

ltbUy8thatW8piOdUOOdin&VU%ri8W%0l'in~OthO~ 8t8tO 

OUt8ldO 0s Tox88j mhd 2lkwl80 rud 00mpsny is not rowirbd 

w virtue of l 8ld statute to pay awh 4 W&x l? the gra m8 prodwed outllde Of 'feu8. BOUeYOF, 88fd w 18 requlrod to 
508 

xonorf4ble Qeorgb FL Bhommrd, p8ge 9 

oolloot 8Wh 8 tar if the gSs rci8 produoed in Pezsa, by deduotingthe slpoupt~o? the tcU ?rom the purahero prloo sndpaylng 

8eld tar to th0 &SU@SO=Or in the Mnuer grO8Oribed by 8t8tute, ii the 8aabhab not alrea@ been paid; 

our anavor to your aotoond QW8tiOU i8 that the ooapany yiiu 88k about Is not reqalr~sd by Virtue Of said 8t8tute to 

rb&mrtMd~~t8XOm, OrbyY%S'tue OfgOr podwedin bUi8- 

f8m 0~ in MY othw 8trte 6iitaido 0s Texa8. 

Your8 very truly 

ATTORHXYQ-Qf~- 

.-